Cigna's Financial Success Driven by Biosimilar Demand

Cigna exceeded Wall Street expectations for third-quarter profits thanks to increased demand for biosimilars and growth in its pharmacy benefit management unit. Despite a drop in net income due to investment losses, the company maintained a strong revenue stream and benefited from distributing Humira biosimilars.

Cigna far surpassed Wall Street's third-quarter profit forecasts, largely due to robust demand for biosimilars and the acquisition of new clients by its pharmacy benefit management unit.

The healthcare conglomerate reported a rise in total adjusted revenue by 36%, reaching $52.64 billion in its Evernorth healthcare services unit. Cigna continues to expand beyond AbbVie's Humira, predicting the U.S. market for biosimilars will surpass $100 billion annually by 2030.

Quarterly net income fell by 47.5% due to investment losses associated with VillageMD. However, Cigna upheld its annual forecast, demonstrating a resilient profit margin despite higher medical care ratios.

(With inputs from agencies.)